Ventures Pitch Lesson
1 Summary Not just an Outline for a Deck, but practical advice for the building and preparation process. 2 Share critical elements we advise our companies on and show you how to learn more. 3 Share a compiled outline that is accepted by the venture community, with additional options. 4 Open up the group for discussion, no question is a dumb question. 1
Telling a Story Nothing has the power to engage people like a great story Golden Circle 5 Stories Ted Talk Presentation The Why, What and How Know your Why Your Origin Story Your Desired Future A Learning Moment A Meaningful Anecdote Your Inner Monologue 2
Telling a Story Who is your Audience? Different methods for conveying a story.doc Words Numbers.xls.ppt Pop-Up Book Todays Lesson 3
Before you Start Find your Gaps Commercialization Monetize your product? Key Relationships? Timing and Cash Needs? Go-To Market Who are you selling to? How are you selling? Sticky Factor Product Market Fit 4
VRIO DOES AN OPPORTUNITY EXIST? VALUE RARITY IMITATE ORGANIZATION V R I O Do its resources and capabilities enable the firm to respond to environmental threats and opportunities? Do competing firms already posses valuable resources and capabilities? Do the firms without resources and capabilities face a disadvantage in obtaining these capabilities? Does the firm s organization permit it to exploit its resources and capabilities? 5
Relentless execution without knowing what to execute is a crime - Steve Blank Pitch Deck Basics
Basic Advice Suggested Length: 10 to 15 Slides Do not read slides, use as supportive element Match your content to desired audience Every pitch is different depending on needs Always be prepared to answer the question Why? 6
Cover Slide Logo and Name of Company Purpose of the Presentation Date the presentation is given Name of Presenter (Co-Founders) Logos of awards, publications etc 7
Elevator Pitch A Brief One Line Statement Should create need for more information Founders Vision What is the Business or Product? Whats the Core Problem? What is the Solution to this Problem? In between your Mission and your Slogan 8
The Team The Core Team Anyone instrumental in execution Photos are Optional, Graphics look great Relevant Experience, Success, Failures Leadership Experience Education and Extended Programs Illustrate that you re the right team 9
The Team: Advisors Advisory Board or Board Get approval before using their names Board of Directors with standard short bios Board of Advisors with relevant experience How are they involved in your company? Reference Gaps and board fills them Only mention investment if they have invested 10
Market Opportunity What is your Market Focus? Use Graphics and Data to Illustrate How big is your market: Units, Revenue, Growth Total Addressable Market: Your Target Name your specific market Show trends with your market in your favor Current market needs including your product 11
Pervasive Problem Illustrate a Pervasive Problem to Solve Use Graphics and Data to Illustrate Big market problem or Unmet Need? Current Solutions are Current Problems? Show the Pain of the Problems Market Evolution creates Need for Solution? Illustrate strong market desire for solution 12
Your Solution This is your core Pitch Show the Proposed Solution, Don t Tell the Solution You have Hypothesis not Fact Not swiss army knife, best bottle opener Do not show videos, only demo Use story to describe typical user experience Save extra features for future road map 13
Traction How has product or company performed so far? Traction can mean internal progress or product progress Timeline and Key Milestones What others are saying about you Achievements and Reputable Acknowledgments Results driven Metrics i.e. Savings etc. Key Internal Metrics i.e. Conversions etc. 14
Competition Does your product fit within the Market? Competition is inevitable either now or later How and Where do you fit in? Direct and Indirect Competitors How you take users from Status Quo Market Landscape Comparison Feature List Comparison 15
Competitive Advantages Advantages for your Company and Product Internal and External Key Partnerships and Talent Patents and Proprietary Elements Sustainable Advantages vs. Current Advantages Barriers to Entry for new players? Competitors Advantages and Weaknesses 16
Business Model How are you going to Execute and Monetize? Use Graphics to Show all Stakeholders and how you add Value How do you make money? Pricing, Method of Billing etc. Type of Revenue and Frequency What drives Profit? Gross Revenue vs. Net Revenue High Volume or Low Volume Business Cash Collections and Timing 17
Marketing Strategy Not who you want to reach but How you reach them Every possible step from pipeline to converting to sales Describe Sales Model and Key Costs Highlight key Channels Unique Strategic Relationships Average cost to Acquire Customer, Sales Cycle Length Sticky Factor and Ongoing Value to Customer 18
Financials Projections and Needs of the Business If you raised funds what would you spend it on and how will it affect growth? 3 (Start-Up) to 5 year (Mid-Stage) Projections, plus Historical if Applicable Target Market Size vs. Acquired Clients to Date Key Revenue Streams vs. Cost Analysis Use of funds, How will capital begin forecast projections? Use simplified version of full financials to illustrate 19
Sources and Uses This is the Ask section of your deck How much money are you asking for and why that is the perfect number Specific use of investment funds, Extension of forecast What stage are you? Seed, Early, Mid etc. What valuation and control will you give in return for capital? Equity Percentage Existing Investors if any Monthly Burn details and projected sustainability 20
Exit Strategy What value do you add to larger companies? The more exit strategies possible the more attractive the investment Potential Acquisitions, Who and Why, What Value? Financial Buyers, Will you generate significant cash flow? Do not mention IPO, Least likely option Illustrate how the audience can benefit form participating Acknowledge your openness to any possibilities 21
Closing Always leave time for questions Be prepared to answer any questions related to your presentation and business Include your Logo Method of contacting you and your team After QA, Be clear as to the next steps for audience Be prepared with actionable items and availability Goal of Pitch is to Sell the Next Step not End Result 22
A vision without an execution plan is a hallucination - Steve Bezos Additional Features
Advice Part 2 Little Things add up Focus on the things you may not think are important Never use Acronyms and Industry Terms Produce a Print Version and a Screen Version Never Argue with your Partner, always support Be honest about all factual information Be open to learning if the answer is no. No such thing as a failed pitch 23
Design Less is more Higher a Professional if need be White space is content, its the frame Squares look ugly, softer is better Closed Cropping is a presentations best friend Use consistent fonts and colors, 2 to 3 of each for same purposes Do not use low quality or non relevant images 24
How to Speak Practice variations of your presentation The more Information and Data you know the better prepared you are to wing it Dress to your audience and your product Do not talk to slow or to fast, no mumbling Do not read from slides Don t be afraid to get comfortable with the audience, they are human too Most Important! Be yourself and Loosen Up 25
Pre Presentation Tips Knowing your Audience makes life much easier Being authentic can create lasting relationships no matter the pitch outcome Use introductions to Angels and VCs, rare response to cold calls Review other investments made by the audience Review all investment criteria, fit your stage and product to their interests Review investor backgrounds to find any common ground Engage the audience before starting, have them introduce themselves 26
2/3 of businesses cannot articulate what their business model actually is Open Discussion
David Dewar Robert Lunny Sebastean Losch Thank You March - 12-2013
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